Common sense has prevailed and there has been another delay in the implementation of the Making Tax Digital for the self-employed and landlords.
Given the difficulties many businesses have encountered over the last 18 months and the current turmoil within HMRC (who are in a desperate state of arrears in almost every department), pushing the start date back to April 2024 is sensible and something we have been calling for, particularly as other changes to the tax system for the self-employed are being considered too.
The quarterly digital reporting for landlords and the self employed was due to start in 2023, but it will be pushed back by 12 months, the second delay to the digitisation programme. This announcement was made in parliament yesterday by Lucy Frazer, who went on to say
‘The government recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic over the last year. In recognition of this and of stakeholder feedback, we will now be introducing MTD for ITSA a year later, in the tax year beginning in April 2024,’ said Frazer in a written statement.
‘General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025.
‘The date at which all other types of partnerships will be required to join will be confirmed later.’
This delay will also affect the introduction of the new penalty scheme for late filing and late payment of tax for ITSA. This will now be introduced for those who are mandated for MTD for ITSA in the tax year beginning April 2024, and for all other income tax self- assessment customers from April 2025. Again we, for once wholeheartedly approve of this delay.
Stewart McKinnon, Director, M&S Accountancy & Taxation